Packaging Corporation of America Exceeds Expectations with Strong Q3 2026 Results
October 22, 2026 - Packaging Corporation of America (PCA) announced strong third-quarter results today, exceeding expectations and demonstrating the company's continued growth and resilience. Chairman and CEO Mark Kowlzan reported net income of $262 million, or $2.93 per share, for the quarter, compared to $247 million, or $2.73 per share, in Q3 2025.
Excluding special items, PCA's net income was $272 million, or $3.04 per share, marking a significant increase of $0.31 per share compared to the same period last year. The company's earnings were driven by favorable price and mix in the packaging segment, as well as the contribution from its acquired Greif business.
The acquired Greif business generated $0.24 of earnings favorably year-over-year, a notable improvement from the $0.11 loss reported during the same period last year. PCA's legacy earnings also improved by $0.07 per share, driven by favorable price and mix in the packaging segment, as well as higher production and sales volume.
PCA's packaging business saw significant growth, with EBITDA excluding special items increasing to $578 million in Q3 2026 from $492 million in Q3 2025. The company's mills produced a record 1,489,000 tons of containerboard during the quarter, an increase of 31,000 tons compared to Q3 2025.
Operational performance was excellent across the board for PCA, with all business units performing well and achieving significant milestones. The company completed its first annual maintenance outage at the Riverville mill under its own ownership safely and successfully, demonstrating its ability to execute complex projects efficiently.
The company's cost structure also saw notable increases during Q3 2026, including rising freight costs, higher recycled fiber costs, purchased power, and chemical costs. PCA expects these input costs to continue rising in the coming quarters.
Mark Kowlzan, Chairman and CEO of PCA, expressed satisfaction with the company's performance, saying 'We exceeded our guidance on the strength of price realization and a higher-than-expected contribution from the acquired Greif business.' He added that while labor and operating costs increased, driven in part by lower-than-forecast corrugated products volume, PCA remains well-positioned to meet customer needs in Q4 2026."
The company's results demonstrate its continued ability to adapt to changing market conditions and execute on its growth strategy. As PCA moves into the fourth quarter, it appears well-equipped to continue delivering strong performance and meeting customer demands.
